DMO sells N1.06trn treasury bills amid 290% oversubscription

Investor appetite for Nigerian Treasury Bills remained strong at yesterday’s primary market auction, as the Debt Management Office (DMO) sold a total of N1.06 trillion to investors against an offer of N700.00 billion. The auction attracted total subscriptions of N2.03 trillion, translating to a bid-to-offer ratio of 2.9 times, or 290 per cent oversubscription, underscoring continued demand for government securities, even as yields adjusted higher across parts of the curve. At the auction, the stop rate on the 91-day bill rose by 2 basis points to 16.30 per cent, while the 364-day paper climbed by 36 basis points to 17.70 per cent. The 182-day tenor, however, was left unchanged at 16.50 per cent. The higher allotment came as investors continued to crowd into short-term sovereign instruments, reflecting expectations around liquidity, inflation and monetary policy direction. Daily Sun learnt that market participants increasingly showed preference for Treasury bills as a relatively safe haven amid elevated yields in the fixed-income space. Furthermore, the 364-day bill remained the most attractive tenor to investors, typically drawing the bulk of subscriptions in recent auctions. Its higher stop rate also suggests the DMO was willing to pay up slightly to clear demand while managing borrowing costs across the curve. The latest auction outcome points to resilient demand for government debt despite the increased stop rates, which often indicate stronger pricing pressure from investors. It also shows the government’s continued ability to raise sizeable funding from the domestic market. Tags: